Bharat Forge Limited plans further investment in wholly-owned subsidiary Kalyani Strategic Systems Limited
Bharat Forge Limited has approved a further investment in its wholly owned subsidiary, Kalyani Strategic Systems Limited (KSSL). The company has sanctioned the investment at fair value, with the proposed expenditure not exceeding Rs. 2,400 million, which will be executed in one or more tranches.The investment relates to KSSL, an Indian public limited company incorporated on December 20, 2010. Kalyani Strategic Systems Limited is engaged in developing and manufacturing defense platforms, systems, and equipment, offering for sale, delivering, and commissioning these products for customers in both India and global markets. KSSL operates within the Defense Industry sector.
The proposed investment by Bharat Forge Limited into KSSL aligns with the subsidiary's core business of trading, manufacturing, and selling assembled products for the defense industry. The company will maintain 100% shareholding in KSSL through this transaction.
KSSL has a presence in India and Spain. To provide context on its operational scale, the turnover of KSSL over the last three financial years is detailed below:
| Financial Year | Turnover (Rs.) |
|---|---|
| FY 2023-24 | Rs. 11,445.58 million |
| FY 2024-25 | Rs. 14,044.97 million |
| FY 2025-26 | Rs. 12,244.70 million |
The investment is categorized as a Related Party Transaction and will be conducted on an arm's length basis. The company has indicated that the transaction is expected to be completed on or before March 31, 2027.
BHARATFORG Stock Price Movement
Bharat Forge Limited shares today slipped by 7.60% to settle at ₹2093.1, marking a significant decline from the previous close. Although the stock reached its 52-week high intra-day with a peak of ₹2295, it closed considerably lower amidst trading activity involving over 5 million shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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